Essays on Dick Smith Foods Company - Strategic Management Case Study

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The paper "Dick Smith Foods Company - Strategic Management " is a good example of a management case study.   Strategic management comprises of planned activities by an organization which enables it to gain competitive advantage. It consists of long term plans like marketing plans and business expansion plans (Gulati & Kletter 2005). Well implemented strategic plans will lead to the success of an organization in the global market. This is because they help it to have unique strategies than the competitors’ hence competitive advantage. Many organizations are contemplating how they can excel in the extensively competitive market.

One of the ways they can achieve such goals is through strategic planning (Collis & Cynthia 2008). Without effective strategic planning, an organization can be driven out of the market by others. This is because of high competition in various industries hence the need for effective and better planning. This paper will, therefore, discuss the ways in which an organization’ s competencies, resources, and capabilities among others can be utilized to create a competitive advantage. An organization can create a competitive advantage through its various resources. These include valuable assets, knowledge, financial capacity, learning and development, dynamic processes, and manufacturing processes (Salvador 2005).

The quality of the products being manufactured greatly depends on the consistency and the quality of the equipment for manufacturing. Effective machines produce quality products that can meet the customers’ demands leading to satisfaction. Therefore, the company will attract and maintain a large share of customers than the competitors’ hence competitive advantage (Barney 2001). For example, Dick Smith Foods Company has been performing well in the market since its re-branding. This is because the company has used the resources to source products from the companies of Australia that makes it less costly than manufacturing their own products.

The company has been able to manufacture water cracker biscuits which require special skills to manufacture. Due to its financial capacity, it has been able to hire qualified employees who have the relevant skills for manufacturing the water cracker biscuits. Not many companies have the skills and resources of manufacturing water cracker biscuits. Therefore, the Dick Smith Foods company has gained a competitive advantage through its resources and the fact that it manufactures a variety of products. The ability to develop effective policies for learning and development can enable an organization to create a competitive advantage.

The capacity of an organization to train and develop the skills of their employees than the competitors is also crucial (Lei 2003). This is because after training and developing the employees, This will improve their skills and make the company lead in innovations leading to the manufacturing of quality products hence meeting the customers’ demands. The cognitive learning theory proposes that employees can improve their productivity through learning. Organizational development can be achieved through providing programs or procedures that should be followed by employees.

This can ensure they eliminate any deviations from the core values of the organization (Priem & Butler 2001). For instance, Woolworths Company has managed to maintain its competitive advantage because of training and developing the skills of their employees. The company has programs and procedures to follow when accomplishing tasks. There are programs which ensure that each employee undergoes training and development every after six months. This has enabled the company’ s employees to improve their skills.

Thus they have improved their production as well as increased innovation of the products and channels of distribution like using the middlemen. These innovative ideas are unique from those of the competitors thus the company has gained a competitive advantage (Robb 2013).


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